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Originally Posted by someone123
In the 80's lots of people seriously thought that Japan would overtake the US in economic output, and there was all kinds of speculation about the special character of Japanese workers and management and how Americans could not compete with this magic voodoo. Japan is growing at an average rate now (corrected for population growth, which people often forget about).
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Our path in the West may mirror Japan's - but not to the same extent due to demographics. We have an aging society and the economic gains of the past will be harder to repeat as our population growth rate decreases. We also haven't arrived at Japan-like debt problems, but there's a worrying trend in that direction.
China is a unique case. It has embraced a lot of what works in the West (capitalism vs. communism) and has had buy-in from its population due to explosive economic growth and relatively homogeneous population without the government having to give up its power.
How long this lasts is a good question - people in democracies can vent their frustrations with the political system by replacing a government. As long as the tide is rising, the government of China looks smart. What it does when the chips are down is the real question. President Xi just made himself leader for as long as he wants. Will he follow Brezhnev's mould in the Soviet Union? The population of China looks to peak in the next few decades. What will that mean?
Coming back to Canada, in the final analysis, I believe that Canada will get past the demographic issue of the baby boom. Indeed, our immigration level has moderated our lack of fertility - we won't see anywhere near the dependency ratio of other nations like Japan. We may re-examine our views of 'retirement' and what that means - sitting around for 20-30 years of your life playing golf might not be what 'retirement' will be in the future. Maybe we'll see nuclear families become extended families once again as parents move in with their adult children. Who knows?
I feel that Canada will be a very fortunate place to ride out the 21st century, despite its potential problems.